Brief History, Responsibilities and Functions of the Securities and Exchange Commission in Nigeria. The Securities and Exchange Commission (SEC) is the apex regulatory body for Nigeria's capital market. It, however, operates under the supervision of the Federal Ministry of Finance.

1. SECURITIES AND
EXCHANGE
COMMISSION
 HISTORY
 RESPONSIBILITIES AND FUNCTIONS
 CONCLUSION

2. Securities and Exchange Commission
(SEC)
The Securities and Exchange Commission (SEC) is the apex regulatory body for
Nigeria's capital market. It, however, operates under the supervision of the
Federal Ministry of Finance. The Securities and Exchange Commission, Nigeria,
like other exchange commissions elsewhere, regulates the operation of capital
market transactions, ensuring that the relevant rules are complied with.
The business of capital formation and mobilization is at the root of economic
development, which is why every economy wants to develop its capital market.
Capital markets drive capital mobilization and allocation to businesses, in the
push for economic growth. Through the capital market, companies and
governments mobilize capital for investment, while offering opportunity to
investors to seek profitable outlets for their funds. Because complex financial
processes are often involved, and large numbers of investors participate, the
need for guarding the mechanism for those transactions becomes apparent.
Investors need to be protected, just as the process needs to be kept viable.

3. History
 The Securities and Exchange Commission as it is today, is the outcome of
the Investments and Securities Act (ISA) No 45 of 1999. However, its seed
was actually sown in 1962, when the Capital Issues Committee, an arm of
the Central Bank of Nigeria, was set up to evaluate applications from
companies wanting to raise capital from the market and recommend for
approvals. That committee transmuted to the Capital Market Commission
in 1973 and the Securities and Exchange Commission in 1978, by virtue of
Decree No. 7 of 1979. The Investment and Securities Act No. 45 of 1999
finally sought to broaden the operation of the Commission and refocus it
for more impact on economic growth.

4.  An increase in the level of economic activities, coupled with the promulgation
of the Nigerian Enterprises Promotion Decree in 1972, necessitated the
establishment of a body backed by law to regulate capital market activities
hence the creation of the Capital Issues Commission to take over the activities
of the Capital Issues Committee. The Capital Issues Commission was
established with the promulgation of the Capital Issues Commission Decree in
March 1973.
 The new body had a board of nine (9) members, including a representative of
the Central Bank of Nigeria who served as Chairman, while the other eight (8)
members were drawn from some Federal Ministries, the industrial and financial
sectors of the economy.
 In order to cope with emergent challenges, the powers of the Capital Issues
Commission had to be further enhanced. A Financial System Review
Committee was set up by the federal government to review capital market
activities and proffer ways of developing the market. The recommendations of
the Financial System Review Committee in 1976, led to the establishment of
the Securities and Exchange Commission following the promulgation of the
Securities and Exchange Commission Decree No. 71 of 1979 to supersede the
Capital Issues Commission in 1979.

5.  The Commission had more powers to regulate and develop the Nigerian
capital market, in addition to determining the prices of issues and setting
the basis for allotment of securities. Unlike its two predecessors, the
Commission at this stage was excised from the CBN, although it continued
to receive funding from the apex bank.
 It also had an enlarged 12-member board with a CBN representative as
Chairman. Other members were drawn from the Ministries of Finance,
Trade and Industries, the Nigerian Stock Exchange and the Nigerian
Enterprises Promotion Board; other members were nominated on the basis
of individual merit.
 The Commission took off effectively on January 1, 1980 with 51 staff out of
which seven (7) were seconded (for a period of three years) from the
Central Bank of Nigeria (CBN) while a few senior and support service staff
were recruited.
 Nine (9) years after the establishment of the Securities and Exchange
Commission, the enabling law, Decree No. 7 of 1979, was re-enacted as
SEC Decree No. 29 of 1988 with additional provisions to address observed
lapses in the previous arrangement and to enable the Commission pursue
its functions more effectively.

6.  To further enhance the Commission’s pursuit of its objective of investor
protection, a review of the capital market was carried out in 1996 by a
seven – man panel headed by Chief Dennis Odife. Based on the panel’s
recommendations, a new Act known as “The Investment and Securities Act
No. 45 of 1999” was promulgated on May 26, 1999. The Act repealed the
SEC Act of 1998. The new Act was expected to promote a more efficient
and virile capital market, pivotal to meeting the nation’s economic and
developmental aspirations.
 The Investment and Securities Act (ISA) was further reviewed, amended
and subsequently passed into law in 2007. The SEC currently derives its
powers from the ISA 29 of 2007.
 The Securities and Exchange Commission (SEC) joined the International
Organization of Securities Commissions (IOSCO) in June 1985. The
IOSCO is a body of Securities Commissions with the goal of cooperating in
developing, implementing and promoting adherence to internationally
recognised and consistent standards of securities market regulation. The
Nigerian SEC qualified as an Appendix ‘A’ Signatory to the IOSCO MMOU
in 2006 and has continuously been benchmarking its market rules and
regulations against those of IOSCO, the global international standards
setter.

7. Responsibilities and Functions
 The Securities and Exchange Commission broadly has a responsibility to
regulate the capital market and ensure that investors are protected. That
means ensuring that processes increasingly get transparent and that
transaction rules are complied with.
 It scrutinises parties that apply to operate in the capital market as market
operators and licenses those considered suitable. Such operators include:
issuing houses, securities dealers/stockbrokers, sub-brokers, registrars,
trustees, capital market consultants, reporting accountants, solicitors and
investment advisers etc.
 Securities for issue to the investing public are also scrutinized and
registered by the Securities and Exchange Commission. A party intending
an issue must apply to SEC for approval. These include: Equities/shares,
debentures/industrial loans, government bonds and collective investment
schemes.

8.  It is the Security and Exchange Commission's responsibility to license transaction
floors and exchanges, including: Securities Exchanges (like stock exchanges),
Commodities Exchanges and Capital Trade Points, Futures, Options and Derivatives
Exchanges as well as Depository , Clearing and Settlement agencies like the
CSCS.However, what is unclear is whether these factors alone account for the
volatilities in foreign currency and capital markets in the run up to elections or
whether the movement in Brent oil prices, Monetary Policy decisions in developed
economies and other exogenous factors play a role.
 Major financial transactions like mergers, acquisitions, takeovers and other forms of
business combinations must also have the blessing of the Securities and Exchange
Commission.
 SEC has a monitoring role over the capital market. That role is to ensure fair
practices that will advance the market and attract more investment inflow. It
extends to ensuring good corporate governance for the quoted companies which,
among other things, have a responsibility to deliver timely and reliable reporting to
the investing public.
 As investors, it's good to know, too, that the Commission adjudicates on
transaction disputes, in addition to receiving and treating investor/operator
complaints. Parties that are aggrieved over market transactions and fail to get a fair
treatment elsewhere can take their case to SEC. Often, defaulting parties receive
the big stick.

9. Conclusion
The Securities and Exchange Commission is consequently there to see to the
orderly and rapid development of the capital market. It's basic role is to ensure
transparent conduct, such that parties that take decisions, especially on
investments, do so on the strength of good information and sound processes.
By that, it is to attract more funds into the market and also attract more viable
companies that could expand their operations by tapping funds from the
capital market.